Have a friend that is looking for something like this, haven't found any help on Synology or others

Nope. You need either a full x86 computer or, at least, an iOS device with AirPlay support (anything with an A4 or newer CPU: iPhone4+, iPod touch 4+, iPad 1+), which, then, can act as a proxy between a UPnP / SMB etc. NAS source and the ATV.

OK, that's what I was thinking. I haven't been to enamored with such apps. Do you have a specific recommendation for the app? Preferably one that browses with cover art and such, maybe even meta data?

Unfortunately, of all iOS multimedia players I've tested AirPlay proxying-wise (see the UPnP bible linked to above), only the following two support metadata display (I used the one created with Subler with all the tags filled in, including artwork; it's available at https://dl.dropbox.com/u/81986513/12...est-subler.m4v so that you can give it a test ride):

Have a friend that is looking for something like this, haven't found any help on Synology or others

Check out the Qnap TS-410. It is a network storage device which has a built in itunes server. You can optionally install the Twonky Media Server (on the NAS itself...no computer required). These work very well with my Apple TV. As another poster mentioned...jailbreak (ATV2 only) and use XBMC. You'll be happy you did.

Check out the Qnap TS-410. It is a network storage device which has a built in itunes server. You can optionally install the Twonky Media Server (on the NAS itself...no computer required). These work very well with my Apple TV.

they won't work very well at all with an AppleTV unless you jailbreak it.
the NAS won't support Home Sharing, and that is what Apple TV needs.

Again, you would be limited to the ATV2, but the Firecore Media Player even plays back my MPEG4 based Blu-Ray rips ... as in bit-for-bit 1080p MKVs (albeit at 720p). Great for making an on-demand library of your movies/shows.

The "Library" feature with automatic organization and metadata makes the whole experience feel like you're navigating a premium monthly video service too.

And I haven't personally enabled the File Management option to see what it allows me to do, but thought I'd mention it nonetheless.